Everything You Need to Know About Ontario Car Insurance

Did you know that Alberta has the highest insurance premium amount in Canada? On the other hand, Saskatchewan has the lowest insurance premium rate in the country. 

Feeling tempted to move to Saskatchewan yet? If so, you're not alone. Many drivers are on the hunt for affordable insurance options that still provide adequate coverage. Ontario has the third-highest average car insurance premium in Ontario, with an average of $2299. 

The good news is that there are strategies you can implement to get cheap car insurance. In this blog, we will explore actionable steps and insider secrets to help you navigate the insurance landscape and find the best deals. 

According to a study, here are the average insurance premium rates in all provinces. 

 

*The study does not include samples of Quebec drivers

 

Factors Determining Car Insurance in Ontario

When it comes to calculating your insurance premium, insurers take into account various factors, including your driving record. Additionally, the type of vehicle you drive plays a significant role in determining your rates. Typically, if your car has a low theft risk and is inexpensive to repair, you can expect to pay lower insurance premiums. Insurers consider these factors to assess the overall risk of insuring your vehicle.

• Driver's license: To purchase car insurance, a valid driver's license is required. However, it's important to note that if you have a G1 or G2 license under Ontario's graduated licensing program, your premiums may be higher due to your limited driving experience compared to someone with a G license. 

• Vehicle details: When obtaining insurance, the insurance provider will inquire about your vehicle's year, make, and model, as well as its intended usage, such as commuting or business purposes. 

• Driving history: The insurance provider will request information about your driving history, including any driver training courses taken, tickets received, or claims made in recent years. Accuracy is crucial, as failing to disclose past incidents may result in coverage denial. You should also inform the insurer if there will be additional drivers listed on your policy besides yourself. 

• Current policy details: If you already have insurance and are seeking better rates, be prepared to provide details of your current policy. For young drivers living with their parents, it's worth obtaining a quote from their insurer to explore potential discounts for adding your vehicle to their policy. 

By understanding these factors and providing accurate information, you can navigate the car insurance landscape in Ontario with confidence.

 

Read: Everything You Need To Know About Car Loans in Canada

 

Most Expensive Cars to Insure in Ontario

Based on data from a study, here is a list of the most expensive car brands to insure in Ontario.

• Nissan

• Hyundai

• Toyota

• Honda

• Mazda

Nissan owners face premiums that are approximately 11% higher than the average. Following Nissan, Hyundai takes the second spot, with insurance rates about 10% higher than the provincial average, while Toyota ranks third at 9% above the average. Honda comes in fourth place, with insurance costs about 8% higher than the provincial average, and Mazda follows closely behind at 6% above the average.

 

Least Expensive Cars to Insure in Ontario

• GMC

• Chevrolet

• Ford

• Dodge/Ram

• Acura

GMC owners enjoy the cheapest car insurance rates in Ontario, paying approximately 30% less than the provincial average for their policies. Following closely behind is Chevrolet, with insurance rates that are around 26% lower than the average. Ford also offers attractive rates at 20% less expensive than the provincial average. Dodge and Ram owners can save as well, with insurance rates approximately 17% lower than the average. Lastly, Acura rounds out the list of cost-effective options, offering insurance rates that are 13% less expensive than the provincial average.

 

Read: How to Get Cheaper Car Insurance in Canada

 

Can Other People Drive Under Your Ontario Auto Insurance Coverage?

You can allow others to drive your car in Ontario, but they need your permission and a valid license. If you decide to lend your car to someone occasionally, they don't need to be named on your policy, but if someone drives your car regularly, list them as a secondary driver. This applies to family members too. By sharing your car, you're also sharing your insurance. 

If someone other than you or a named driver on the policy causes an at-fault collision, your insurance will cover the damages. Remember that if you lend your car and an accident occurs, your premium will likely increase at renewal.

 

Read: Your Ultimate Guide to Passing the G Test in Ontario

 

Is it Possible to Register a Car Without Insurance in Ontario? 

Car insurance is mandatory in Ontario, so you must provide proof of insurance when registering a vehicle in your name or renewing your registration.

According to the Financial Services Commission of Ontario, failure to carry valid auto insurance can result in fines ranging from $5,000 to $50,000. If caught driving without insurance, your vehicle can be impounded, and your driver's license can be suspended.

Being convicted of driving without insurance can also lead to being classified as a high-risk driver by insurers, resulting in higher premiums or even being denied coverage.

In the event of an accident while driving or riding in an uninsured vehicle, you may be ineligible for income-replacement benefits and may not be able to sue the at-fault driver for compensation. Additionally, if you are found to be at fault in an accident causing injury or death to others, you may be responsible for their expenses and financial losses.

We at Approval Genie specialize in helping individuals find and secure auto financing and insurance. Whether you are looking to purchase a new or used car in Ontario, or seeking insurance coverage for your vehicle, get in touch with us.